In keeping with an earlier proposed agreement, Tata Steel UK has paid 550 million pounds to the steel pension fund, along with a 33% stake in the company, as per company’s press release. It has also agreed to sponsor a new proposed pension scheme, subject to certain conditions, and has invited all members to transfer to the new scheme which will have lower future annual increases for pensioners.
The Tata Group company has been eyeing an exit from the UK since 2016 due to an oversupply of steel, cheap imports and high costs. It has been actively divesting non-profitable assets to pare its total debt (long term plus short term), which stood at Rs 83,014.49 crore FY17.
Thyssenkrupp to decide on the merger of its steel unit with Tata Steel UK at a supervisory board meeting on September 23 or 24 as per leading news daily.
Tata Steel surged more than 4% and was trading at Rs 688.5 during Tuesday’s trading session. It has hit a fresh 52-week high at Rs 688.5 on September 12.
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